S.P., Inc. or L.L.C.???

Thank you for that info, it is very important for most of us who are in this business to get things straight and have the right people on our side.

I have stressed that getting a lawyer first is the best thing, and not waiting until something happens because lawyers can be for the most part the same as Mechanics, some really care and go that little extra to solve a problem while others are just parts changers and go through the motion but never really solve the problem. The same goes for a good CPA, someone who has business knowledge, not trucking knowledge but how to work the numbers within your business plane and your needs. I think an EA is needed with the CPA and to find one at the same time is a good thing instead of scrambling when you get that audit letter in the mail.

 

I have a mixed feeling about CPA's. I have dealt with many of them over the years. Some of them lack tax knowledge. It is not what they have trained and studied for. Many only deal with the tax issues at the time of year as well. Many with these initials will over charge as well. You do not always get what you pay for.

Tax specialist is something you must seek.

The same problem can be found with attorneys who have no interest in smaller operations.

 

"Like shareholders of a corporation, all LLC owners are protected from personal liability for business debts and claims. This means that if the business itself can't pay a creditor -- such as a supplier, a lender, or a landlord -- the creditor cannot legally come after an LLC member's house, car, or other personal possessions. Because only LLC assets are used to pay off business debts, LLC owners stand to lose only the money that they've invested in the LLC. This feature is often called "limited liability." Not to bad mouth but some of you guys need to do some homework before responding without an informed answer. As for taxes, from my understanding, an L.L.C. can use more in tax deductions than an Inc name.

 

LOL, I haven't seen a post yet that contradicted that. It just wasn't spelled out based on the assumption that everyone knows what "limited liability" means generically.

That's why it offers little protection to an owner/operator. The debts of a typical single truck LLC, the business itself, would always be zero, anyway. Lenders won't typically lend money to the business itself (for the above reason), only to the owner personally. And a tort lawsuit would also be against the owner/operator personally, not just the business itself.

Limited liability only exempts an owner from debts of the business, not the debts of the owner, nor lawsuits against the owner/operator personally.

In other words, it does no good to limit lawsuit liability to the driver if you're also the driver.

 

I have a bit of a different issue. I set up an S-corp and through that have bought two straight trucks leased to an expediter. Now I want to get into t/t business, with my own authority, and am having an issue about the insurance, as they won't insure any trucks unless they insure 'all' trucks that I own and I want to leave the straight trucks where they are. Answer seems to be to set up a completely separate corp under another name & address, which I can do - just wondering if anyone has run into something similar or if anyone for whatever reason has set up two different companies operating at the same time and if you have had any issues with doing that.

 

You loose more than you gain in most cases but there may be reasons to do it for some people but the average O/O is better served by SP filing status, there will be those who disagree. They're the one's who have this filing and want everyone else to pay like they do. Haven't you ever heard misery loves company?

 

Have a friend who's a dentist he invested in two llc's and when the llc's ran out of money they came after him. he just got out of bankruptcy for 6,000,000.00.
If you are an officer of a corp or LLc they can come after you individually and personally if you were negligent or culpable in the operations that cause the creditors to loose money if it can reasonably proven you were responsible beyond your normal course of business they will sue you as a individual.

 

That's exactly right. Limited liability only means that an owner's liability for debts of the business itself is limited to the value of their investment. It offers no protection against lawsuits against them for their own actions.